The Chief Internal Auditor presented an update upon the activities of the Counter Fraud Team within Internal Audit, during 2013/2014 and to date, although his report did not include the extensive, specialist activities of the Benefits Fraud Team, which were reported separately. He outlined the remit of the Counter Fraud Team and indicated that, during the monitoring period, the development and recognition of the team had continued with significant progress being made, resulting in 16 referrals made to it – an increase of some 30% of the cases referred from the previous year. He commented that key activities of the team were to –

·  Prepare relevant best practice policies and procedures;

·  Change the culture of the organisation by raising awareness amongst the workforce to fraud and corruption and through targeted training;

·  Proactively manage the risk of fraud to the Council through targeted audits in high risk areas;

·  Provide both a proactive and a reactive response to tackling fraud across the authority.

Members highlighted the need to fully support the Fraud Awareness Week that was planned during 2014/2015 at which officers and public would be made aware of the impact of fraud, not only on the Council but on the wider community, and also to encourage the use of reporting mechanisms. Members noted also that, whilst much had been made in the media about the level of benefit fraud, the Audit Commission report ‘Protecting the Public Purse 2013’ stated that this only represented 15% of the total fraud and abuse targeted at local authorities. Consequently, the remaining 85% of fraud suffered by the local authority was not benefit related.

In response to questions from Members, the Chief Internal Auditor proposed to provide a breakdown of ‘fraud’ and ‘error’ in his next update report. He also proposed to circulate to Members details of the activities to be undertaken during Fraud Awareness Week.

Resolved –

(1)  That the report be noted and the work of the Counter Fraud Team continue to be supported.

(2)  That details of Fraud Awareness Week be presented to the Cabinet with a request that the activities planned be fully supported.